Andorra Strengthens Anti-Money Laundering Measures

In a bid to maintain its reputation as a transparent and trustworthy international financial center, Andorra has strengthened its regulatory framework to combat money laundering and terrorism financing. The principality’s commitment to compliance and anti-money laundering measures is evident in the robust policies and procedures implemented by financial institutions.

Customer Due Diligence Takes Center Stage

Financial institutions in Andorra must now obtain and verify information about customers’ identities, including:

• Name
• Address
• Date of birth

They are also required to identify beneficial owners of corporate entities and trusts, ensuring transparency and accountability. Additionally, financial institutions must assess the risk associated with each customer, determining the level of monitoring and enhanced due diligence required for high-risk individuals or businesses.

Transaction Monitoring Crucial to Compliance

Transaction monitoring is a critical aspect of Andorra’s compliance and anti-money laundering measures. Financial institutions use advanced technology and algorithms to analyze transaction patterns and detect potential red flags, such as:

• Large cash deposits
• Frequent transfers to high-risk jurisdictions
• Transactions involving politically exposed persons

Reporting Suspicious Activities a Must

Financial institutions in Andorra have a legal obligation to report any suspicious activities to the Financial Intelligence Unit (FIU). The FIU then conducts further investigations and shares information with domestic and international law enforcement agencies as necessary.

International Cooperation Key to Global Efforts

Andorra recognizes the importance of international cooperation in combating money laundering and terrorism financing. The principality actively participates in various international initiatives and organizations, sharing information, best practices, and expertise with other countries to strengthen global efforts against financial crime.

In conclusion, Andorra’s commitment to compliance and anti-money laundering measures is a positive step towards maintaining its reputation as a trustworthy international financial center. By implementing robust customer due diligence, transaction monitoring, and reporting of suspicious activities, Andorra contributes to the global fight against money laundering and terrorism financing.